Travel portal ixigo filed its draft red herring prospectus (DRHP) with SEBI a few days ago. The third travel app to have gone public after MakeMyTrip and EaseMyTrip, ixigo intends to raise Rs 1,600 crore through its initial public offering (IPO).
Though ixigo has not been focusing on the flight booking space, it still controls a 12 percent market share. In the train booking space, it commands a 42 percent market share due to its acquisition of Confirmtkt, and with Abhibus coming on board, ixigo has a 10 percent market share in the bus booking space. MakeMyTrip has a 60 percent market share in the bus booking space after it acquired RedBus and a lion’s share in the flight booking space.
The travel booking app wants to be in the sweet spot and not compete with the likes of MakeMyTrip for it has its eyes on the rail and road travel market. In 2020-21 alone, 93 percent of its transactions were from tier II or tier III cities. As per its DRHP, out of the 100 million journeys Indians make each day, 70 percent are by road and 24 percent by train and they are betting big on these numbers to fuel their growth to unprecedented levels.
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